Third country customs controls will apply to all pleasure craft moving within UK waters in the event of a no-deal Brexit, HM Revenue & Customs has confirmed to British Marine regarding the VAT Paid Status of recreational craft.
Upon exit from the European Union, which is currently scheduled for Friday 29 March, “customs declarations may be required for pleasure craft which are being imported to the UK from other EU countries and export declarations will be required for pleasure craft sold to other EU countries”.
For goods moving in and out of the UK temporarily, private owners and businesses alike will be required to use special customs procedures such as Temporary Admission or the Carnet system.
“These procedures will require personal owners or traders to provide financial security to cover any potential liability for import duty. It will be for importers and exporters to decide which process will be most suitable.”
For the time being, UK-based importers will have to prepare for import VAT payments on non-UK vessels, though “for the foreseeable future” these payments will not be due up front and may be reflected in regular VAT returns.
Import VAT relief may be available to some ex-pat UK owners under certain conditions. And vessels brought into the UK from the EU for works will be subject to customs procedures along the same lines as non-EU vessels are at present
In Ireland, temporary admissions (for up to 18 months) of pleasure craft from outside the EU can be made without payment of VAT or Customs Duty.